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MICHIGAN-
BASED BANK
DISCUSSING
SETTLEMENT
WITH CFPB
Flagstar Bancorp, Inc. announced it filed
a Form 8-K with the U.S. Securities and
Exchange Commission (SEC) in order to
notify its investors that the bank is currently
trying to work out a settlement with the
Consumer Financial Protection Bureau
(CFPB) regarding alleged violations of
consumer financial laws.
e alleged violations on the part of
Flagstar Bank date back to 2011. e CFPB
has made civil investigative demands
regarding the bank's mitigation loss and
default service practices, and in response
the bank has provided the CFPB with
information and documents relating to those
practices, the bank says in the filing.
Flagstar said in the filing that while it will
"vigorously defend against any enforcement"
that the CFPB may bring against the bank,
representatives from Flagstar are currently
trying to work out a settlement with CFPB
officials.
Spokespeople for both Flagstar Bancorp
and the CFPB declined to comment beyond
what was in the filing.
Based in Troy, Michigan, Flagstar
Bancorp reported a net income of $25.5
million for the second quarter, which
computes to an earnings, per-share price
of 33 cents, according to Flagstar's Q2 2014
financial report. e bank's financial gains for
Q2 far exceeded analysts' expectations, which
were low after the company experienced a net
loss of $78.9 million in the first quarter.
